How I would fix the government and, therefore, the economy

Anyone reading this weblog knows by now that I blame the government for most of what is wrong with the economy. It spends way too much, arbitrarily regulates, makes promises it neither funds nor keeps, yet continues to grow in size and scope on an almost daily basis. None of these claims are to say that other elements have not contributed to the problems our economy faces, yet I cannot help but notice that everywhere there is a problem in our economy, there is also a government presence.

That said, I have been asked–more than once now–how I would fix the problem. Given that my ideal of a constrained-to-the-original-and-intended-limits-of-the-Constitution government would be almost impossible to implement in a meaningful way any time soon, I have tried to give the idea of a fix thought with the intent solutions that could be implemented now. Here is what I have come up with to date:

Replace the income tax with a national sales tax

One of the Constitutional mandates of the federal government is to regulate interstate commerce. Taxing individual income–that is taxing productivity–does nothing to fulfill that mandate. A national sales tax would, and would also function to fund the government in a way that could not be evaded by anyone. I agree that some amount of money should be exempted from such a tax to avoid the immediate impact it could have on lower income earners (in the form of a rebate, probably), and I think allowances should be made for certain kinds of wholesale business, but on the whole I would tax all sales at a nominal rate with targeted higher taxes on certain kinds of goods and services.

Abolish the IRS

With no income tax, there would be no reason to have an Internal Revenue Service, and it should be abolished.

Abolish the Fed

In my opinion, the Federal Reserve and the Reserve Bank system is one of the worst ideas ever conceived by modern man. Giving the government the ability to manipulate currency for its own gain, to control banks, and therefore to control every citizen’s money is immoral and unethical. Kill the Fed, and that action by itself could right the economy.

Institute an independent, judicially managed federal audit service

Our federal government is crooked. Anyone who has spent any time working for, studying, or being afflicted by our government knows this is true. It spends trillions of dollars every year, yet is constantly broke, fails to deliver promised services, constantly cuts back the services it does offer, even as those who fund it and maintain it continue to give themselves raises, make money from their positions, and pat the backs of their cronies. I would implement a quadrennial governmental review that would alternate with the presidential election cycle and that would deliver its report to the public before it delivers it to Congress as part of the budget cycle.

Thrift Social Security

Contrary to the claims of mafias like AARP, the current Social Security scheme is broken and cannot be fixed by mere tweaks. To fix the program, perhaps permanently, I would implement something very similar to the Thrift Savings Plan into which federal government workers invest as part of their retirement plans. If the system works for and has remained solvent for the government, why not for the rest of us?

Invest Medicare

I would replace the current Medicare scheme with individual medical savings accounts funded by pre-tax dollars with a government guarantee against most risk. Some sort of federally guaranteed catastrophic care insurance might be appropriate, but I think it would be rendered unnecessary by other reforms.

Abolish all federal subsidies

Yes, I mean all of them. Abolish everything from agriculture subsidies to student loans to unemployment, and instead focus on encouraging the growth of local and state entities to tackle any problems that might remain once the billions and billions of dollars currently tied up in handouts return to the economy.

Tort reform

I would reform and simplify our chaotic and unmanageable civil justice system so it favored justice over income for lawyers, especially with regard to medical, patent, and copyright lawsuits.

Reform the national incorporation system

Without an income tax, a lot of corporate law would no longer be necessary, but for what remained, I would implement a system that allowed for more categories of corporations in an effort to differentiate between small companies and the monstrous ones responsible for most of the abuse. I think I would make the consequences for breaking the law categorically far worse for larger corporations, and I would constrain the way larger corporations are allowed to function within the political and legal systems.

These are just several ideas that I think could go a long way toward improving our national situation in a short period of time, mostly by returning trillions of dollars to the economy. I am sure there are many people who would disagree, but then again, maybe they could offer their own solutions.

2 Responses to How I would fix the government and, therefore, the economy

These are much higher offices than I am totally able to fathom. (That’s the advantage of, your education. I think.) Bully for the reform ideas, DL. The federal auditions make, total sense. Like, a department that the founding fathers would head if they came forward in time. (There might even be some, life imprisonments or worse dealt out.)
Several states have eradicated income tax and use, sales tax. They do well.
Alot of rich jackasses would lose their jobs and be forced to get up off their pompous, lazy, asses and actually have to do some real work if the IRS and Federal Reserve were abolished.
Being the layman and worker bee, I am. I think more along the lines of how the manufacturing business could ensure reform. Like stopping, unecessary importing. (It would stand to teach some, major retailers a lesson if we could pull it off. Some more original and real creativity and style might return to our society.) Making more useful products in the United States (like oil and gas and electronics).
Give, a large crew not unlike the Citizens Conservation Corps or the National Recovery Act to do some massive enviornmental cleanup of the, entire nation. These things could be steps for future business holdings.
To hell with the idea that we’d be isolating. We’re still, the melting pot but you would have to be a legal alien, though.
Whatever solutions enacted. We have to work together. I’m tired of this, “Who cares. It’s too late.”…attitude.
You make it sound like we could get, America back instead of bleeding us to the marrow like what’s taking place now.

DJ, I get what you are saying about manufacturing and all that, but I cannot help but believe that these things would happen as a matter of course if the hundreds of billions of dollars currently held hostage by the federal government were to be returned to the people.

Plus, the things you suggest depend a lot on individual Americans deciding that locality and quality are more important than low prices. If people started buying and shopping locally, that would be a change no one could ignore.